Hey Traders,
You might have heard people call me “the Income “Ace ” — and that’s because my main thing is selling option to create consistent income.
Covered calls. Naked puts. Credit spreads. You name it — I’ve sold it.
So it might surprise you to hear this, but…
Sometimes, I buy options.
Not often. But when the setup’s right — and the goal is clear — I’ll go ahead and hit that buy button.
Let me show you when and why.
Why I Don’t Usually Buy Options
Before I get to the exceptions, let’s be real about something:
✔ Option buyers lose 90–95% of the time.
✔ Options are a zero-sum game.
That means for every losing buyer, there’s a winning seller.
And if 90% of people are losing… well, I’d rather be the other guy.
That’s why my main strategies consist of selling options. It’s the highest probability setup you can get in this business.
I’m not selling to be clever or to be different — I sell because it’s the best way I know to stack the odds in your favor.
But even with all that said…
There are two situations where I’ll flip the script and become a buyer…
1. Buying a Put for Protection
Let’s say I’ve been riding a stock higher — something like AVGO or NVDA — and I’m sitting on a big gain.
I don’t want to sell it… for a couple of reasons… Maybe I think it’s going to dip and go back up eventually.
Or maybe I want to avoid the big tax burden I’d have if I sold it at a huge profit.
But at the same time, I don’t want to get caught off guard if the stock pulls back.
So what do I do?
I buy a protective put — also called a married put — to act as insurance.
It’s simple:
- I own the shares
- I buy a put at or near the current stock price, usually 30–40 days out
- If the stock keeps climbing, the put expires worthless (fine by me… it was just insurance anyway)
- If the stock drops, the put goes up in value and protects my downside
Just like you’d buy insurance on your house or your car… I use puts as insurance on big positions I don’t want to sell.
2. Buying a Call on Earnings (But Only Like This)
Now here’s the other time I buy — and it’s a little more fun.
Every now and then, when a stock is reporting earnings after the close, I watch how it trades in the last 15 minutes of the day.
Why? Because amateurs control the open… but pros control the close.
If a stock is climbing into the close before earnings, that tells me the smart money expects a strong report.
So what do I do?
I buy a call option right before the close — just minutes before — and then…
I sell it first thing the next morning.
No hanging around. No chasing.
Just a quick, overnight earnings pop.
It doesn’t always work — and I don’t do it with big money — but man, when it hits, it hits hard.
Recap
Most of the time, I’m selling options and collecting premium up front. That’s where the edge is.
But every now and then, I’ll buy.
Not because I want to gamble.
But because the situation calls for it.
And that’s the key — have a reason… Have a plan. Know the risk.
Because whether you’re selling or buying, the best traders are the ones who know exactly what they’re doing — and why.
Trade well,
Jack Carter
